By: Horace McCormick

Program Director

UNC Executive Development

About the Author:

Horace McCormick, Jr. serves as a Program Director of UNC Executive Development at the University

of North Carolina Kenan-Flagler Business School. Horace has 15+ years executive human resources

and talent management experience in global fortune 200 organizations. He has designed executive

development and learning strategies at all organizational levels and has developed senior leaders in

Europe, Asia, North and Central America.

If you'd like to talk to the author of this paper or to any member of the UNC Executive Development

team about your talent development needs, call 1-800-UNC-EXEC or email unc_exec@unc.edu.

All Content © UNC Executive Development 2016

Website: www.execdev.unc.edu |Phone: 1.800.862.3932 |Email: unc_exec@unc.edu

7 Steps to Creating a

Lasting Learning Culture

7 Steps to Creating a Lasting Learning Culture

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Introduction

lobalization, technological advances, demographic shifts, and rapid business changes make

creating a learning culture in organizations more critical than ever. These shifts are also

requiring more transformative approaches to learning as leaders struggle with ambiguity, uncertainty,

and demands for greater transparency and knowledge. According to Edward Hess, author of Learn or

Die (Columbia Business School Publishing, 2014), organizations that learn fastest adapt well to

changing environments and perform better over time. Organizations and individuals must be

continuously learning, adapting, and improving or they risk professional obsolescence. A learning

culture is a systematic approach to establishing a personal and organization growth mindset.

In a report released this year by Deloitte, 84 percent of the executives surveyed said that learning was

an important or very important issue in their organizations (Haims and Pelster, n.d.). In fact, learning

was so important that U.S. companies spent an estimated $70.6 billion on training in 2015 according

to Training Magazine (Dillon, 2016). Yet only 31 percent of the executives responding to the Deloitte

survey said their organizations had a learning culture (Dillon, 2016). Those same respondents also

said their organizations were not developing skills fast enough or leaders deeply enough (Haims and

Pelster, n.d.).

This white paper:

Defines what a learning culture is;

Discusses why creating a learning culture is so critical for today’s organizations;

Provides an overview of the benefits learning cultures have for organizations;

Describes 4 biases that act as barriers to creating a culture of learning;

Offers 7 steps on how to create a learning culture, and;

Spotlights organizations that have successfully built a learning culture.

What is a learning culture?

learning culture is a culture of inquiry (Linders, 2014). Organizations with learning cultures

encourage employees to constantly add knowledge and develop competence (Nabong, 2015).

Research by the online salary, compensation, and benefits information company PayScale found that a

learning organization is one that intentionally collects information, reflects on that information, and

shares the findings with all employees to improve organizational performance. It is this intentional

collection and dissemination of information that allows learning organizations to adapt quickly and

consequently perform better than their non-learning culture peers (Florentine, 2014). Organizations

with learning cultures encourage employees to have open minds and an independent quest for know-

ledge and shared learning because these qualities help achieve organizational goals (Grossman, 2015).

Even though less than a third of executives responding to the Deloitte survey said their organizations

fostered a learning culture, the survey found that employees at all levels and from all generations

want—and expect—dynamic, self-directed, and continuous learning opportunities from their

employers (Haims and Pelster, n.d. and Grossman, 2015).

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Why learning cultures are so critical for

today’s organizations

rganizations with learning cultures learn faster and, as Hess has found, adapt better to changing

business environments, thereby performing better over time. Hess also notes that advances in

technology and automation have completely eliminated some jobs and created new ones that require

quick thinking, creativity, and high social and emotional intelligence, making the ability to learn more

important than ever (Grossman, 2015). And, as writer Polly Traylor (2016) notes, the half-life of

knowledge is shrinking as the economy continues to go digital, requiring employers to develop

organizational cultures that encourage employees to stay up-to-date.

If outside forces like technology, automation, and digital disruption are pushing employers to develop

learning cultures, inside forces—their employees—are also pulling them. Employees want to

continuously learn because they understand that the “the learning curve is the earning curve,” and they

expect their employers to provide them the opportunities to learn (Haims and Pelster, n.d.). A 2014

CEB study on learning confirms employees’ expectations when it found that respondents said they

spent nearly 40 percent of their total work time learning (Grossman, 2015).

O

Google’s Learning Culture

Everyone, it seems, wants to work for Google. Google is known as an employer of choice for many reasons, one of which is because of its careful cultivation of a learning culture. To ensure that its learning culture thrives, Google takes care to provide information in ways that will stick. Information is distributed in ways that make sense on the job, and in a push/pull style. Information is “pushed” down at the right time and in places where the learner will use it. It is also “pulled” back by creating an archive of information and ensuring that employees can easily access it in applications like Dropbox and Wikis.

Google also creates a learning atmosphere where employees feel safe to ask questions and to talk about their ideas. Knowledge is shared vertically, laterally, and among different groups or even organizations. Forms of knowledge sharing include asking for feedback, asking for help, and keeping people up-to-date on projects.

Google also takes pains to celebrate failures. They have formalized informal and continuous learning through coaching, offering support tools, and training that can be requested at any time.

Source: Gutierrez, 2016.

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How employees learn is changing too. That same CEB study found that nearly 80 percent of

respondents said their work-related learning came from sources outside of the learning and

development function, an 11 percent increase from 2012 (Grossman, 2015). And employees are

tapping into their mobile devices to learn anywhere and anytime. (For more information on emerging

L&D technologies see the UNC Executive Development white paper Wired to Learn: How New

Technologies Are Changing L&D Delivery.) Today, employees can access courses online, view a

YouTube tutorial, download an app, or take a webinar, making their learning more personalized. This

preference to experience more self-directed learning environments is not just a Millennial thing; a

study by Bersin by Deloitte found that this preference for independent learning cuts across

generations—from Millennials to Baby Boomers (Grossman, 2015).

The benefits of learning cultures

rganizations known for their learning cultures—like SAP, Apple, American Express, Southwest

Airlines, MasterCard, and Google—consistently outperform their peers in productivity and

profit, but there are numerous other benefits that result when organizations create a truly learning

culture (Nabong, 2015). Organizations find that when they commit to learning and make it a core

business value, they make an organization-wide commitment to continuous improvement, and this

translates into faster time-to-market and improved organizational agility (Florentine, 2014).

Leaders and talent management professionals will see other benefits as an outcome of an organization

known to have a learning culture. Learning cultures improve employee engagement, lower turnover,

improve employee satisfaction, encourage problem solving among employees, and increase employee

retention (Nabong, 2015 and Casey, 2015). Organizations with a reputation of having a learning

culture are also able to attract top talent (Gutierrez, 2016) and can better develop leaders at all levels,

which comes in handy in succession planning. Organizations with learning cultures also develop

employees who more readily embrace and adapt to change (Blackwood, 2014).

Barriers to creating a learning culture

y all accounts, learning cultures improve an organization’s profits, improve employee morale

which in turn improves retention, and can be used to attract and retain top talent. Business

leaders are also “sold” on learning because they know it keeps them competitive. Yet organizations

find that creating a learning culture seems to elude them. So what are the barriers organizations face

when trying to create a culture of learning?

Francesca Gino, a professor at Harvard University, and Bradley Staats, an associate professor at the

University of North Carolina Kenan-Flagler Business School, spent a decade exploring that question.

Their research concluded that organizations find it hard to become or remain learning organizations

because of a:

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Bias toward success;

Bias toward action;

Bias toward fitting in, and;

Bias toward experts (Gino and Staats, 2015).

Bias toward success

No one goes into business to fail, but it is this sole focus on success that stymies failures, which, as

Gino and Staats write, are the root of learning. The bias toward success also leads employees to a

fixed (rather than open) mindset, which hinders learning. This bias can produce an overreliance on

past performance—also a learning killer—that affects current employees, as well as attracting new

talent.

Bias toward action

When faced with a challenge or problem, people tend to put all their time and energy toward fixing

that challenge or problem, often rushing in to do something, even if that something is counter-

productive or ultimately detrimental. This, writes Gino and Staats, often leads to exhaustion because

of increased work hours and a lack of reflection. To stimulate learning and help employees slow down

and reflect on the challenge, employers should deliberately build breaks into schedules and encourage

reflection after every action.

Bias toward fitting in

The human need to feel that we fit in can prohibit learning in organizations because it stops people

from applying their strengths. To counter this bias, employers should encourage people to not conform

to what they believe is the norm and encourage them to bring their strengths to the table. This will not

only nurture their learning, but the learning of others.

Bias toward experts

The bias toward experts, Gino and Staats say, started in the early 20th century with the scientific

management movement that tried to quantify how successful organizations operate. The process of

studying organizations so closely led to the idea that employers should turn to experts for the best

ideas and suggestions. And hence, the proliferation of the consultant industry. This tendency,

however, can staunch learning because it doesn’t take into consideration the value of a “non-expert’s”

time and practice on a job. To counter this bias, Gino and Staats suggest that employers encourage

workers at all levels to “own” the problems that affect them and to use their work experience to fix

them rather than instantly turning to an expert.

How to create a learning culture

dentifying the barriers and biases that prevent organizations from creating a learning culture can be

useful in determining the steps leaders and talent management professionals can take to create a I

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lasting learning culture in their workplaces. To create a learning culture consider taking the following

steps:

1. Rethink the traditional learning and development approach (Haims and Pelster, n.d.).

2. Broaden your organization’s definition and understanding of intelligence.

3. Leverage discoveries in neuroscience that explain how we learn and how unconscious bias

interferes with learning.

4. Obtain senior executive buy-in and encourage active executive engagement in learning

experiences.

5. Encourage the rapid sharing of knowledge and learning.

6. Celebrate failures and understand that a learning mindset is a growth mindset (Gino and

Staats, 2015).

7. Allow for feedback and reflection (Gino and Staats, 2015).

Rethink the traditional learning and development approach

It is time for leaders and talent management professionals to realize that the way employees want to

learn today—through mobile learning applications and other readily accessible online lectures,

TEDTalks, webinars, and podcasts—has

permanently changed the traditional

learning and development process.

Employees increasingly want more

control of their own learning, making

learning a continuous process, not only

classroom style events. There is no

substitute for the bonding and peer

relationships that stimulate learning in

formal classroom development;

however, organizations must integrate

mobile learning applications and other

learning-on-demand resources before,

during, and after formal learning events

to keep the attention of participants who

have decided this is the way they want to

learn.

Additionally, formal classroom learning

must bring real organizational problems

into the room. Participants are

increasingly demanding more relevance,

application, and sustainment of learning.

There is no more appetite for theoretical

frameworks without usable tools,

immediate, practical application, and an

opportunity to measure the impact. To

support a true learning culture,

MasterCard Migrates Learning to

an Employee-Centric

Platform

MasterCard’s transition from a traditional payment processing company into a tech organization caused them to take a hard look at their workforce—now more than 40 percent Generation Y. They realized that the changes in their business strategy required changes to their traditional learning and development approach. To that end, they shifted away from periodic learning programs owned by learning and development professionals toward self-directed learning owned by individual employees. An examination of their employee learning preferences also caused them to offer learning in new formats like mobile learning apps, massive open online courses (MOOCs), on-demand micro-learning and online learning communities.

Source: Haims and Pelster, n.d.

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classroom learning must feel more like laboratories and practice fields by integrating technology,

simulation, emotion, and other creative ways to ignite participant insights.

Amazon has created a culture of learning that uses relentless and continuous peer feedback as its

cornerstone. Peer-to-peer feedback can become toxic, however, if not handled carefully. How an

organization structures and models peer feedback will have a big impact on the company’s culture.

Peer-to-peer feedback must lean more toward positive reinforcement with high doses of authenticity

and support to avoid the pitfalls of a highly competitive internal culture. Sherryl Dimitry, director of

talent development for Skanska USA, also advocates peer-to-peer feedback as a key component of a

learning culture. In addition, Dimitry suggests integrating leader-led development and real

organizational challenges into the classroom, particularly when developing emerging senior leaders.

Leaders and talent management professionals must ensure that employees:

Are provided with relevant topics that connect with job challenges, career interests, and the

business strategy in ways that inspire people to learn and grow;

Have access to credible sources from which to learn (not all YouTube tutorials are created

equal);

Can access self-assessments and other tools that help them understand themselves and their

own thinking;

Are provided learning platforms they can access easily;

Are able to connect with and create learning communities within the organization, and;

Are given time at work to learn through playful creativity and experimentation with

technology that may benefit the organization.

Broaden your organization’s definition and understanding of

intelligence

A true learning culture must have a view of intelligence that goes beyond cognitive skills. Leaders and

talent management professionals must expand their organizations’ intelligence perspective beyond

cognitive capabilities to keep pace with the competitive demands of a complex global economy. A

deeper understanding of emotional and cultural intelligence is revolutionizing our thinking about

global competence and interpersonal effectiveness. Women, for example, score higher than men in

emotional intelligence, and Asian executives score higher than American executives. Also, the higher

executives ascend in the organization, the lower their emotional intelligence scores. Emotional

intelligence is a better predictor of professional success and continues to receive more recognition as

the differentiator for high potential leaders. As Edward Hess noted, new emerging jobs are requiring

employees to be more creative and have high levels of social and emotional intelligence. These

broader skill sets should also change how learning is defined. Learning is no longer merely book

knowledge; it includes helping employees develop social, emotional, and cultural intelligence.

In a recent study by UNC Kenan-Flagler Business School, multicultural sensitivity was identified as

the number one barrier to global effectiveness. Cultural and emotional intelligence assessments

continue to improve and find their way into the best executive development programs in the world.

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As organizations broaden their definition and understanding of intelligence, it is critical that they

provide employees and leaders the necessary skills to manage and value differences in thinking,

working, and problem-solving. Leaders must deliberately provide emotionally safe environments for

people who are easily labeled as “different.” This is the most fundamental responsibility of an

inclusive organization that wants to retain talent. Employers must develop diverse talent or they will

lose these individuals at rates much higher than other talent.

Leverage recent discoveries in neuroscience to remove barriers to

creating a learning culture

Neuroscience is the study of the brain and how it works. It helps us understand why we unconsciously

develop deep-seated beliefs, behaviors, and biases that become barriers to learning. Neuroscience can

explain why we resist the changes we seek through learning. It can also explain why we are more

receptive to trusting and learning from people who seem more like us, and why we are skeptics of

ideas from people who are different. Through recent developments in neuroimaging, we can see what

is physically happening within the brain when we learn.

Even though old habits are hard to break, brains can establish new circuits as a result of learning. This

allows us to make different choices, to embrace change, and to choose curiosity over fear. This

happens as we learn how to engage our brains “braking” mechanisms that allow us to exercise more

self-control and self-awareness and gain deeper insights during learning experiences. Leaders and

employees can learn the skills required to be aware of their own brain’s thinking errors and escape the

autopilot we call unconscious bias. We have known for decades that unconscious bias is real. It thrives

in our education systems, talent systems, organizational policies, and benefits and rewards systems.

Our unconscious bias is so dominant that it can contradict and over-ride our conscious beliefs and

values. (For more information on the effects of unconscious bias in the workplace, see the UNC

Executive Development white paper The Real Effects of Unconscious Bias in the Workplace.)

With deeper understanding of neuroscience and learning, biases can be systematically interrupted and

filtered from our thinking and our approach to creating a learning culture. For more understanding of

how our brains work and learn, see David Rock’s book Your Brain at Work: Strategies for

Overcoming Distraction Regaining Focus, and Working Smarter All Day Long (HarperBusiness,

2009) or Michael J. Mauboussin’s Think Twice: Harnessing the Power of Counterintuition (Harvard

Business Review Press, 2012).

Obtain senior executive buy-in and encourage their active

participation in learning

Buy-in is not just a decision. It’s a behavior. Senior leaders must actively participate in the formal

development of their teams. At Owens Corning, CEO Mike Thaman and CHRO Dan Smith “walk the

talk” when it comes to C-suite engagement and establishing a culture of learning. They participate in

every session of their general management development program designed in collaboration with UNC

Executive Development and Root Learning. The program consists of four two-day sessions delivered

over a two-year period, and Thaman and Smith don’t miss a session. The Owens Corning program

was highlighted in SHRM Magazine in an article written by Owens Corning VP of Human Resources,

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Robert Paxton. “The support we provided to our leaders was key to our transformation. Our

chairman/CEO and senior vice president of HR provided valuable feedback and mentoring, which

framed participants’ perspectives and opened up lines of communication that extended beyond the

classroom. Finally, and perhaps most important, the cohorts provide one another with tremendous

support through facilitated calls, work assignments and discussions between sessions. Their shared

experiences have brought members of our management team closer together and have generated more

spontaneous interaction and sharing across the organization.” Paxton also added that Owens Corning

senior-leader succession depth and quality metrics improved because they were able to better coach,

mentor, and manage key talent through increased interaction as a result of senior executive

engagement in the program. The results according to Paxton: better business plans, more game-

changing innovations, improved financial indicators and performance, and faster execution of strategic

decisions.

Senior leaders must be committed to learning if a learning culture is to succeed. Leaders can help

create a learning culture and demonstrate their support by:

Being consistent. All leaders should support ongoing employee learning.

Recognizing employees who learn new skills. They deserve the recognition, and the

recognition will motivate other employee to also acquire new skills.

Making sure that clear learning expectations are set in their units.

Making their own learning a top priority, demonstrating to employees that they are “walking

the talk.” (Landrum, 2016).

Encourage the rapid sharing and application of knowledge and

learning

Technology in the learning and development industry has developed rapidly over the past few years,

and there is certainly no shortage of learning management systems (LMS) available to leaders and

talent management professionals that not only help the employee-centric learning movement, but also

facilitate the sharing of knowledge and learning. (For more information about the array of learning

technology available, see the UNC Executive Development white paper Wired to Learn: How New

Technologies Are Changing L&D Delivery.)

But there are also the good old-fashioned, lower-cost standbys; debriefing, mentoring, and coaching.

Coaching and mentoring are excellent ways to share and foster the application of learning, skills, and

knowledge and to communicate organizational values and strategies. Mentoring also improves

teamwork (Rokos, 2015) and can build trust within an organization. (To learn more about how to

build a mentoring program, see the UNC Executive Development white paper How to Build a

Successful Mentoring Program.) Another way to share knowledge and learning is to regularly debrief

projects, identify key learning, and create platforms to share these discoveries throughout the

organization.

Coaching is key to making learning stick. This “stickiness” factor is crucial to ensure there is a return

on investment from learning initiatives. Coaches meet with learners pre- and post-learning and help

them transform learning into results and impact. Companies that include high-impact coaching

throughout the organization as a component of a learning culture outperform their peers. High-impact

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coaching can be defined as leveraging external coaches, a cadre of trained internal coaches, and

leaders as coaches to accelerate learning and development. According to a recent study conducted by

the Human Capital Institute (HCI) and the International Coaching Federation (ICF), organizations

with strong coaching cultures continue to report higher employee engagement and stronger financial

performance.

Celebrate failures and encourage a growth mindset

Thomas Edison once said, “I have not failed. I’ve just found 10,000 ways that won’t work.” Failure

spurs learning, but only if an organization allows it. In their Harvard Business Review article, “Why

Organizations Don’t Learn,” Gino and Staats urge leaders to constantly emphasize to employees that

mistakes are merely learning opportunities. One way to encourage risk-taking is to find employees

who are change agents in their organizations and give them permission to experiment and push

boundaries without fear of retribution (Big Think Editors).

Gino and Staats also encourage employers to embrace and teach a growth—or open—mindset.

Studies have found that employees with growth mindsets are more likely to seek opportunities for

self-improvement, are more willing to embrace change, and are more likely to persist when they

confront obstacles than employees with fixed mindsets. Employees with growth mindsets, then, are

faster, more avid learners.

Allow for feedback and reflection

This step counters the bias toward action, giving employees time to think about challenges before

they act. Some employers build this time into work schedules—Tommy Hilfiger, for example, has

meeting-free Fridays. Others allow for feedback by holding after-action meetings at the conclusion of

a project. Another way to allow for reflection is to encourage employees to take 20 to 30 minutes

each morning to plan for their day or 20 to 30 minutes at the end of the day to reflect on how the day

went (Gino and Staats, 2015). Taking this time not only helps employees better meet challenges and

make better decisions, it also reduces stress and burnout.

Conclusion

rganizations with learning cultures realize that building capability is like building muscle. Real

development requires preparation, conditioning, and repeated trips to the gym over time.

Organizations reap the benefits through sustainable individual and organizational capability. As a

result, performance and engagement systematically improve over time. Learning cultures, when

integrated with coaching, reflection, mentoring, technology, and an understanding of how our brains

work, can exponentially accelerate development, bench-strength, and organizational speed and agility.

Learning cultures retain talent, boost creativity, and attract more top talent. Studies have found that

prospective and current employees across all generations increasingly expect employers to provide

plenty of opportunities for learning and development. If organizations are to survive, succeed, and win

in the war for the best talent, they must develop learning cultures.

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About UNC Executive Development

Our approach to program design and delivery draws upon the power of real-world, applicable

experiences from our faculty and staff, integrated with the knowledge our client partners share about

the challenges they face.

We combine traditional with experiential and unique learning to ensure that all individuals gain

relevant new skills that they can easily implement within their own organizations. Through action

learning and business simulation activities, we challenge participants to think, reflect and make

decisions differently.

Our Approach: The Partnership

Our team customizes each leadership program through a highly collaborative process that involves our

clients, program directors, faculty and program managers. We are dedicated to following-up with our

clients and individual participants to ensure that their learning experiences have been meaningful and

impactful. This integrated approach consistently drives strong outcomes.

Our Approach: The Results

Our executive education programs are designed with results in mind, and we are focused on

successfully meeting our clients' business and academic expectations. Below are a few examples of

the results our client partners have achieved:

Big data analytics

Leadership refocused with new

strategy and cohesive vision

Strategic plans created for the global

marketplace

Supply chains streamlined

Products redefined

New markets targeted

Cost-saving measures developed

Silos leveled

Teams aligned

Participants leave empowered to bring in new ideas, present different ways to grow business and

tackle challenges. The result is stronger individuals leading stronger teams and organizations.

Contact Us

Website: www.execdev.unc.edu | Phone: 1.800.862.3932 | Email: unc_exec@unc.edu

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